Parents always dream of giving their children the best possible education and a financially secure future. To achieve this, it becomes essential to plan early and invest in reliable schemes that offer guaranteed returns. The State Bank of India (SBI), the largest public sector bank in India, offers several child investment plans that combine savings with security. One such scheme in 2025 allows parents to invest just ₹6000 every month and accumulate around ₹4.25 lakh in five years, making it a popular choice for families looking to secure their child’s future.
Key Features of the Scheme
The SBI Child Investment Scheme is designed to help parents save systematically for their child’s education, higher studies, or other future needs. By contributing a fixed amount every month, parents build a disciplined savings habit. The scheme provides guaranteed returns at maturity, ensuring that the invested money grows without exposure to market risks. The amount collected after five years can be used to cover school fees, coaching expenses, or even serve as a base fund for higher education.
How the ₹6000 Monthly Investment Works
Investing ₹6000 per month translates into ₹72,000 annually. Over a five-year period, the total contribution amounts to ₹3.6 lakh. With the power of compounding and the fixed interest rate offered by SBI, this amount grows to approximately ₹4.25 lakh at maturity. This structure ensures that parents not only save regularly but also earn an additional return on their contributions. The predictable nature of returns makes it easier for families to plan their finances.
Eligibility and Account Opening
This scheme is available to Indian residents who want to invest for their children’s future. Parents or guardians can open the account in the name of their child and act as the primary contributor. The process of opening the account is simple and requires basic documents such as identity proof, address proof, and the child’s birth certificate. Interested parents can visit the nearest SBI branch, where bank officials guide them through the formalities and help them choose the right investment plan.
Tenure and Maturity Benefits
The scheme typically runs for a fixed tenure of five years, making it suitable for short-term goals like school or college fees. At the end of the maturity period, the invested principal along with accumulated interest is paid out. This ensures that parents receive a lump sum that can be directly used for the child’s education or other planned expenses. In some cases, the scheme also offers the option to extend the investment period for further growth of funds.
Tax Benefits for Parents
Apart from guaranteed returns, parents also enjoy tax benefits when investing in SBI child schemes. Contributions made under such plans may qualify for tax deductions under Section 80C of the Income Tax Act, up to the permissible limit. The maturity amount received at the end of the term is usually exempt from tax under Section 10(10D), subject to certain conditions. These tax advantages make the scheme even more attractive for salaried families.
Why Parents Prefer SBI for Child Investment
SBI has built a reputation as one of the most trusted banks in India. The government backing ensures complete safety of funds, which is crucial when saving for a child’s future. Additionally, the bank’s wide branch network and customer support make it convenient for parents across the country to invest and manage their accounts. The reliability, guaranteed returns, and tax savings offered by SBI make this child scheme a preferred option in 2025.
Planning for Your Child’s Future with SBI
The cost of education in India is rising every year, and without proper planning, it can become difficult for parents to meet future expenses. By investing ₹6000 monthly in the SBI Child Investment Scheme, parents can systematically prepare for these financial responsibilities. The accumulated ₹4.25 lakh at the end of five years can provide much-needed financial support during critical stages of a child’s academic journey. Starting early and investing consistently ensures that the financial burden does not disrupt the family’s budget.
Conclusion
The SBI Child Investment Scheme 2025 is a practical and reliable option for parents who want to secure their child’s future without taking risks. By investing a manageable amount of ₹6000 per month, families can accumulate around ₹4.25 lakh in five years. With government backing, guaranteed returns, tax benefits, and complete security, this scheme stands out as one of the best investment choices for parents in India.
Disclaimer
This article is intended for informational purposes only. Interest rates, maturity values, and tax benefits are subject to change as per government and bank regulations. Investors should consult financial advisors before making final decisions.
